BILL NUMBER: SB 665	CHAPTERED  09/03/99

	CHAPTER   328
	FILED WITH SECRETARY OF STATE   SEPTEMBER 3, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 3, 1999
	PASSED THE SENATE   AUGUST 26, 1999
	PASSED THE ASSEMBLY   AUGUST 23, 1999
	AMENDED IN ASSEMBLY   AUGUST 19, 1999
	AMENDED IN ASSEMBLY   JULY 6, 1999
	AMENDED IN ASSEMBLY   JUNE 29, 1999
	AMENDED IN ASSEMBLY   JUNE 15, 1999
	AMENDED IN SENATE   APRIL 5, 1999

INTRODUCED BY   Senator Sher

                        FEBRUARY 24, 1999

   An act to amend Sections 25281, 25299.10, 25299.13, 25299.23.1,
25299.24, 25299.37, 25299.39, 25299.39.1, 25299.39.2, 25299.51,
25299.52, 25299.53, 25299.54, 25299.57, and 25299.59 of, to add
Sections 25299.11.5, 25299.62, and 25299.63 to, to repeal Section
25299.38 of, and to repeal and add Section 25299.56 of, the Health
and Safety Code, relating to underground storage tanks.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 665, Sher.  Underground storage tanks.
   (1) Existing law generally regulates the storage of hazardous
substances in underground storage tanks and requires underground
storage tanks that are used to store hazardous substances and are
installed after January 1, 1984, to meet certain requirements
concerning secondary containment.  Existing law defines the terms
"hazardous substance" and "person" for purposes of these provisions.

   This bill would make technical revisions to those definitions.
   (2) Under the existing Barry Keene Underground Storage Tank
Cleanup Trust Fund Act of 1989, owners and operators of petroleum
underground storage tanks are required to establish and maintain
evidence of financial responsibility for taking corrective action and
compensating 3rd parties for bodily injury and property damage
arising from operating an underground storage tank.  Existing law
requires every owner of an underground storage tank to pay a storage
fee for each gallon of petroleum placed in the tank.  The fees are
required to be deposited in the Underground Storage Tank Cleanup
Fund.  The money in the fund may be expended by the State Water
Resources Control Board, upon appropriation by the Legislature, for
various purposes, including payment of a California regional water
quality control board's or local agency's corrective action costs,
and the payment of claims to aid owners and operators of petroleum
underground storage tanks who take corrective action to clean up
unauthorized releases from those tanks.  Existing law provides that
the fund may sue and be sued in its own name.
   This bill would make a statement of legislative intent regarding
the construction of the act.  The bill would revise the definition of
the terms "claim," "site," and "tank" for purposes of the act and
would define the term "adjudicative proceeding" for purposes of the
act.  The bill would delete the authorization for the fund to sue and
be sued in its own name.
   (3) Existing law requires the board to pay a claim for regulatory
technical assistance to a property owner or operator who meets
specified requirements and who is otherwise eligible for
reimbursement.
   This bill would  revise that requirement by limiting the amount of
such a claim to $3,000 per occurrence to an eligible owner or
operator and would provide that technical assistance only includes
assistance in the preparation and submission of a claim, as
specified.
   (4) Existing law requires the board to determine an applicant's
eligibility for a claim for corrective action costs and to notify the
applicant of this determination within 60 days of the receipt of the
claim application, and if a claimant requests a review of that
determination, the board is required to render a decision within 30
days.  The board is required to issue all decisions on a claim for
corrective action costs and third-party costs within 90 days after
submission.
   This bill would revise the procedures for making determinations on
claims for corrective action costs and third-party compensation
costs, and would specify procedures for filing a petition for review,
with regard to an unpaid claim.  The bill would specify the standard
for judicial review of a final decision by the board, and would
provide for related matters.  The bill would specify procedures for
the review of a work plan for corrective action and the preapproval
of corrective action costs, based upon specified factors.
   (5) Existing law specifies the conditions under which a corrective
action site may be closed, specifies a uniform closure letter, and
authorizes the board to require closure of a tank case under the
jurisdiction of a regional board or local agency that is implementing
the local oversight program.  Existing law authorizes the board to
suspend corrective action or investigation work at a site that is not
an emergency site, except for specified activities.
   This bill would authorize the board to recommend closure of a tank
case that is under the jurisdiction of a local agency that is not
implementing the local oversight program, would specify procedures
for the review of the board's decision to require closure, and would
revise the contents of the uniform closure letter.  This bill would
impose a state-mandated local program by imposing new duties upon the
local agencies that implement the act.
   The bill would instead prohibit the board from suspending
specified activities at a site, would revise the definition of
emergency site for purposes of such a suspension, and would require
the board to adopt regulations with regard to specifying the
conditions for an emergency site.  The bill would prohibit the board
from suspending a corrective action or investigation until the
effective date of those regulations.
   The bill would prohibit the board from reimbursing a claimant for
any eligible cost for which the claimant has been, or will be,
compensated by another party, except as specified, and would make a
statement of legislative intent that this prohibition is declaratory
of existing law.
   (6) Existing law requires the board to develop a system for
storing and retrieving data regarding petroleum discharge from
underground storage tanks.  The board is required to remove a site
from the data base when no residual contamination remains.
   This bill would instead require the board to designate a site
included in the data system as having no residual contamination if
the board makes a specified determination.  The bill would also
define the term "residual contamination" for purposes of the
designation of a site in that data base.
   (7) The bill would correct obsolete references and delete obsolete
provisions.
  (8) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 25281 of the Health and Safety Code is amended
to read:
   25281.  For purposes of this chapter, the following definitions
apply:
   (a) "Automatic line leak detector" means any method of leak
detection, as determined in regulations adopted by the board, which
alerts the owner or operator of an underground storage tank to the
presence of a leak.  "Automatic line leak detector" includes, but is
not limited to, any device or mechanism which alerts the owner or
operator of an underground storage tank to the presence of a leak by
restricting or shutting off the flow of a hazardous substance through
piping, or by triggering an audible or visual alarm, and which
detects leaks of three gallons or more per hour at 10 pounds per
square inch line pressure within one hour.
   (b) "Board" means the State Water Resources Control Board.
"Regional board" means a California regional water quality control
board.
   (c) (1) "Certified Unified Program Agency" or "CUPA" means the
agency certified by the Secretary for Environmental Protection to
implement the unified program specified in Chapter 6.11 (commencing
with Section 25404) within a jurisdiction.
   (2) "Participating Agency" or "PA" means an agency which has a
written agreement with the CUPA pursuant to subdivision (d) of
Section 25404.3, and is approved by the secretary to implement or
enforce the unified program element specified in paragraph (3) of
subdivision (c) of Section 25404, in accordance with Sections 25404.1
and 25404.2.
   (3) "Unified Program Agency" or "UPA" means the CUPA, or its
participating agencies to the extent each PA has been designated by
the CUPA, pursuant to a written agreement, to implement or enforce
the unified program element specified in paragraph (3) of subdivision
(c) of Section 25404.  For purposes of this chapter, the UPAs have
the responsibility and authority, to the extent provided by this
chapter and Sections 25404.1 and 25404.2, to implement and enforce
only those requirements of this chapter listed in paragraph (3) of
subdivision (c) of Section 25404.  The UPAs also have the
responsibility and authority, to the extent provided by this chapter
and Sections 25404.1 and 25404.2, to implement and enforce the
regulations adopted to implement the requirements of this chapter
listed in paragraph (3) of subdivision (c) of Section 25404.  After a
CUPA has been certified by the secretary, the unified program
agencies shall be the only local agencies authorized to enforce the
requirements of this chapter listed in paragraph (3) of subdivision
(c) of Section 25404 within the jurisdiction of the CUPA.  This
paragraph shall not be construed to limit the authority or
responsibility granted to the board and the regional boards by this
chapter to implement and enforce this chapter and the regulations
adopted pursuant thereto.
   (d) "Department" means the Department of Toxic Substances Control.

   (e) "Facility" means any one, or combination of, underground
storage tanks used by a single business entity at a single location
or site.
   (f) "Federal act" means Subchapter IX (commencing with Section
6991) of Chapter 82 of Title 42 of the United States Code, as added
by the Hazardous and Solid Waste Amendments of 1984 (P.L. 98-616), or
as it may subsequently be amended or supplemented.
   (g) "Hazardous substance" means either of the following:
   (1)  All of the following liquid and solid substances, unless the
department, in consultation with the board, determines that the
substance could not adversely affect the quality of the waters of the
state:
   (A) Substances on the list prepared by the Director of Industrial
Relations pursuant to Section 6382 of the Labor Code.
   (B) Hazardous substances, as defined in Section 25316.
   (C) Any substance or material which is classified by the National
Fire Protection Association (NFPA) as a flammable liquid, a class II
combustible liquid, or a class III-A combustible liquid.
   (2) Any regulated substance, as defined in subsection (2) of
Section 6991 of Title 42 of the United States Code, as that section
reads on January 1, 1989, or as it may subsequently be amended or
supplemented.
   (h) "Local agency" means the local agency authorized, pursuant to
Section 25283, to implement this chapter.
   (i) "Operator" means any person in control of, or having daily
responsibility for, the daily operation of an underground storage
tank system.
   (j) "Owner" means the owner of an underground storage tank.
   (k) "Person" means an individual, trust, firm, joint stock
company, corporation, including a government corporation,
partnership, limited liability company, or association.  "Person"
also includes any city, county, district, the state, another state of
the United States, any department or agency of this state or another
state, or the United States to the extent authorized by federal law.

   (l) "Pipe" means any pipeline or system of pipelines which is used
in connection with the storage of hazardous substances and which is
not intended to transport hazardous substances in interstate or
intrastate commerce or to transfer hazardous materials in bulk to or
from a marine vessel.
   (m) "Primary containment" means the first level of containment,
such as the portion of a tank which comes into immediate contact on
its inner surface with the hazardous substance being contained.
   (n) "Product tight" means impervious to the substance which is
contained, or is to be contained, so as to prevent the seepage of the
substance from the primary containment.  To be product tight, the
tank shall not be subject to physical or chemical deterioration by
the substance which it contains over the useful life of the tank.
   (o) "Release" means any spilling, leaking, emitting, discharging,
escaping, leaching, or disposing from an underground storage tank
into or on the waters of the state, the land, or the subsurface
soils.
   (p) "Secondary containment" means the level of containment
external to, and separate from, the primary containment.
   (q) "Single walled" means construction with walls made of only one
thickness of material.  For the purposes of this chapter, laminated,
coated, or clad materials are considered single walled.
   (r) "Special inspector" means a professional engineer, registered
pursuant to Chapter 7 (commencing with Section 6700) of Division 3 of
the Business and Professions Code, who is qualified to attest, at a
minimum, to structural soundness, seismic safety, the compatibility
of construction materials with contents, cathodic protection, and the
mechanical compatibility of the structural elements of underground
storage tanks.
   (s) "Storage" or "store" means the containment, handling, or
treatment of  hazardous substances, either on a temporary basis or
for a period of years.  "Storage" or "store" does not mean the
storage of hazardous wastes in an underground storage tank if the
person operating the tank has been issued a hazardous waste
facilities permit by the department pursuant to Section 25200 or
granted  interim status under Section 25200.5.
   (t) "Tank" means a stationary device designed to contain an
accumulation of hazardous substances which is constructed primarily
of nonearthen materials (e.g. wood, concrete, steel, plastic) which
provides structural support.
   (u) "Tank integrity test" means a test method capable of detecting
an unauthorized release from an underground storage tank consistent
with the minimum standards adopted by the board.
   (v) "Tank tester" means an individual who performs tank integrity
tests on underground storage tanks.
   (w) "Unauthorized release" means any release of any hazardous
substance which does not conform to this chapter, including, but not
limited to, an unauthorized release specified in Section 25295.5,
unless this release is authorized by the board or a regional board
pursuant to Division 7 (commencing with Section 13000) of the Water
Code.
   (x) (1) "Underground storage tank" means any one or combination of
tanks, including pipes connected thereto, which is used for the
storage of hazardous substances and which is substantially or totally
beneath the surface of the ground.  "Underground storage tank" does
not include any of the following:
   (A) A tank with a capacity of 1,100 gallons or less which is
located on a farm and which stores motor vehicle fuel used primarily
for agricultural purposes and not for resale.
   (B) A tank which is located on a farm or at the residence of a
person, which has a capacity of 1,100 gallons or less, and which
stores home heating oil for consumptive use on the premises where
stored.
   (C) Structures, such as sumps, separators, storm drains, catch
basins, oil field gathering lines, refinery pipelines, lagoons,
evaporation ponds, well cellars, separation sumps, lined and unlined
pits, sumps and lagoons.  Sumps which are a part of a monitoring
system required under Section 25291 or 25292 and sumps or other
structures defined as underground storage tanks under the federal act
are not exempted by this subparagraph.
   (D) A tank holding hydraulic fluid for a closed loop mechanical
system that uses compressed air or hydraulic fluid to operate lifts,
elevators, and other similar devices.
   (2) Structures identified in subparagraphs (C) and (D) of
paragraph (1) may be regulated by the board and any regional board
pursuant to the Porter-Cologne Water Quality Control Act (Division 7
(commencing with Section 13000) of the Water Code) to ensure that
they do not pose a threat to water quality.
   (y) "Underground tank system" or "tank system" means an
underground storage tank, connected piping, ancillary equipment, and
containment system, if any.
   (z) (1) "Unified program facility" means all contiguous land and
structures, other appurtenances, and improvements on the land which
are subject to the requirements of paragraph (3) of subdivision (c)
of Section 25404.
   (2) "Unified program facility permit" means a permit issued
pursuant to Chapter 6.11 (commencing with Section 25404), and which
encompasses the permitting requirements of Section 25284.
   (3) "Permit" means a permit issued pursuant to Section 25284 or a
unified program facility permit as defined in paragraph (2).
  SEC. 2.  Section 25299.10 of the Health and Safety Code is amended
to read:
   25299.10.  (a) This chapter shall be known, and may be cited, as
the Barry Keene Underground Storage Tank Cleanup Trust Fund Act of
1989.
   (b) The Legislature hereby finds and declares all of the
following:
   (1) In order to help ensure an efficient petroleum underground
storage tank cleanup program that adequately protects public health
and safety and the environment and provides for the rapid
distribution of cleanup funds that will assist the state's recovery,
it is in the best interest of the public that the board devote
maximum effort to the expedited processing and payment of all claims
filed pursuant to Sections 25299.57 and 25299.58.
   (2) It is estimated that approximately 90 percent of the
underground storage tanks in the state contain petroleum and the
remaining 10 percent of the tanks contain various chemical
constituents.
   (3) Although the exact extent of the problem is unknown, it is
thought that a significant number of the underground storage tanks
containing petroleum in the state may be leaking.
   (4) In recent years, owners or operators of underground storage
tanks have been unable to obtain affordable environmental impairment
liability insurance coverage to pay for corrective action or the
obtainable coverage has been outside their financial means.
   (5) There are long-term threats to public health and water quality
if a comprehensive, uniform, and efficient corrective action program
is not established.
   (6) It is in the best interest of the health and safety of the
people of the state to establish a fund to pay for corrective action
where coverage is not available.
   (7) A uniform, comprehensive, and efficient program establishing
financial responsibility and corrective action requirements for
leaking underground storage tanks containing petroleum will enable
private commercial insurers to expand the availability and
affordability of insurance coverage.
   (8) An efficient program of establishing corrective action
requirements and funds or insurance coverage should encourage
corrective action to be taken in the first instance by the owner or
operator of the leaking underground storage tank containing
petroleum.
   (9) Subchapter IX (commencing with Section 6991) of Chapter 82 of
Title 42 of the United States Code provides for regulation of
underground storage tanks and allows underground storage tanks to be
regulated pursuant to a state program, in lieu of a federal program,
in states which are authorized to implement these provisions.
   (10) It is in the interest of the people of the state, in order to
avoid direct regulation by the federal government of persons already
subject to regulation under state law pursuant to Chapter 6.7
(commencing with Section 25280), to authorize the state to implement
the provisions of Subchapter IX (commencing with Section 6991) of
Chapter 82 of Title 42 of the United States Code, including any acts
amending or supplementing Subchapter IX and any federal regulations
and guidelines adopted pursuant to Subchapter IX.
   (11) It is in the public interest for the state to provide
financial assistance to small businesses and farms which have limited
financial resources, to ensure timely compliance with the law
governing underground storage tanks, and to ensure the adequate
protection of groundwater.
   (12) Nothing in this chapter shall be construed as waiving any
immunity provided the state or its departments and agencies by the
United States Constitution.
  SEC. 3.  Section 25299.11.5 is added to the Health and Safety Code,
to read:
   25299.11.5.  "Adjudicative proceeding" has the same meaning as
defined in Section 11405.20 of the Government Code.
  SEC. 4.  Section 25299.13 of the Health and Safety Code is amended
to read:
   25299.13.  "Claim" means a written request for payment of costs
eligible for reimbursement from the fund.
  SEC. 5.  Section 25299.23.1 of the Health and Safety Code is
amended to read:
   25299.23.1.  (a) "Site" means the parcel of real property at which
an underground storage tank is located.
   (b) If underground storage tanks are located at adjacent parcels
of real property, the adjacent parcels together constitute one site
if both of the following apply:
   (1) The underground storage tanks are, or have been, operated by
the same person.
   (2) The adjacent parcels are under common ownership or control.
   (c) Notwithstanding subdivision (a), the board may consider a
parcel of real property as consisting of multiple sites,
corresponding to the number of distinct underground storage tank
operations at the parcel, if the board makes both of the following
findings:
   (1) There is more than one underground storage tank located at the
parcel.
   (2) Each separately operated underground storage tank or group of
underground storage tanks is not, and has not been, operated by a
person who is operating or has operated another underground storage
tank at the same parcel.
  SEC. 6.  Section 25299.24 of the Health and Safety Code is amended
to read:
   25299.24.  "Tank", "underground storage tank," "underground tank
system," and "tank system" have the same meaning as defined in
Chapter 6.7 (commencing with Section 25280), except that "tank",
"underground storage tank," "underground tank system," and "tank
system" mean only those tanks that are defined as petroleum
underground storage tanks under the federal act.
  SEC. 7.  Section 25299.37 of the Health and Safety Code is amended
to read:
   25299.37.  (a) Each owner, operator, or other responsible party
shall take corrective action in response to an unauthorized release
in compliance with this article and regulations adopted pursuant to
Section 25299.77.  In adopting regulations pursuant to Section
25299.77, the board shall develop corrective action requirements for
health hazards and protection of the environment, based on the
severity of the health hazards and the other factors listed in
subdivision (b).
   (b) Any corrective action conducted pursuant to this chapter shall
ensure protection of human health, safety, and the environment.  The
corrective action shall be consistent with any applicable waste
discharge requirements or other order issued pursuant to Division 7
(commencing with Section 13000) of the Water Code, all applicable
state policies for water quality control adopted pursuant to Article
3 (commencing with Section 13140) of Chapter 3 of Division 7 of the
Water Code, and all applicable water quality control plans adopted
pursuant to Section 13170 of the Water Code and Article 3 (commencing
with Section 13240) of Chapter 4 of Division 7 of the Water Code.
   (c) (1) When a local agency, the board, or a regional board
requires an owner, operator, or other responsible party to undertake
corrective action, including preliminary site assessment and
investigation, pursuant to an oral or written order, direction,
notification, or approval issued pursuant to this section, or
pursuant to a cleanup and abatement order or other oral or written
directive issued pursuant to Division 7 (commencing with Section
13000) of the Water Code, the owner, operator, or other responsible
party shall prepare a work plan that details the corrective action
the owner, operator, or other responsible party shall take to comply
with the requirements of subdivisions (a) and (b) and the corrective
action regulations adopted pursuant to Section 25299.77.
   (2) The work plan required by paragraph (1) shall be prepared in
accordance with the regulations adopted pursuant to Section 25299.77.
  The work plan shall include a schedule and timeline for corrective
action.
   (3) At the request of the owner, operator, or other responsible
party, the local agency, the board, or the regional board shall
review a work plan prepared pursuant to paragraph (1) and either
accept the work plan, if it meets the requirements of this section,
or disapprove the work plan if it does not meet those requirements.
If the local agency, board, or the regional board accepts the work
plan, it shall indicate to the owner, operator, or other responsible
party, the actions or other elements of the work plan that are, in
all likelihood, adequate and necessary to meet the requirements of
this section, and the actions and elements that may be unnecessary.
If the local agency, board, or regional board disapproves the work
plan, it shall state the reasons for the disapproval.
   (4) In the interests of minimizing environmental contamination and
promoting prompt cleanup, the responsible party may begin
implementation of the proposed actions after the work plan has been
submitted but before the work plan has received regulatory agency
acceptance, except that implementation of the work plan may not begin
until 60 calendar days from the date of submittal, unless the
responsible party is otherwise directed in writing by the regulatory
agency.  However, before beginning implementation pursuant to this
paragraph, the responsible party shall notify the regulatory agency
of the intent to initiate proposed actions set forth in the submitted
work plan.
   (5) The owner, operator, or other responsible party shall conduct
corrective actions in accordance with the work plan approved pursuant
to the section.
   (6) (A) The local agency, the board, or the regional board shall
advise and work with the owner, operator, or other responsible party
on the opportunity to seek preapproval of corrective action costs
pursuant to Section 2811.4 of Title 23 of the California Code of
Regulations or any successor regulation.  Regional board staff and
local agency staff shall work with the responsible party and fund
staff to obtain preapproval for the responsible party.  The fund
staff shall grant or deny a request for preapproval within 30
calendar days after the date a request is received.  If fund staff
denies a request for preapproval or fails to act within 30 calendar
days after receiving the request, an owner, operator, or other
responsible party who has prepared a work plan that has been reviewed
and accepted pursuant to paragraph (3), and is denied preapproval of
corrective action costs for one or more of the actions required by
the work plan, may petition the board for review of the request for
preapproval.  The board shall review the petition pursuant to Section
25299.56, and for that purpose the petition for review of a request
for preapproval of corrective action costs shall be reviewed by the
board in the same manner as a petition for review of an unpaid claim.

   (B) If the board receives a petition for review pursuant to
subparagraph (A), the board shall review the request for preapproval
and grant or deny the request pursuant to this subparagraph and
subparagraph (C).  The board shall deny the request for preapproval
if the board makes one of the following findings:
   (i) The petitioner is not eligible to file a claim pursuant to
Article 6 (commencing with Section 25299.50).
   (ii) The petitioner failed to submit one or more of the documents
required by the regulations adopted by the board governing
preapproval.
   (iii) The petitioner failed to obtain three bids or estimates for
corrective action costs and, under the circumstances pertaining to
the corrective action, there is no valid reason to waive the
three-bid requirement pursuant to the regulations adopted by the
board.
   (C) If the board does not deny the request for preapproval
pursuant to subparagraph (B), the board shall grant the request for
preapproval.  However, the board may modify the request by denying
preapproval of corrective action costs or reducing the preapproved
amount of those costs for any action required by the work plan, if
the board finds that the fund staff has demonstrated either of the
following:
   (i) The amount of corrective action reimbursement requested for
the action is not reasonable.  In determining if the fund staff has
demonstrated that the amount of reimbursement requested for an action
is not reasonable, the board shall use, when available, recent
experience with bids or estimates for similar actions.
   (ii) The action required in the work plan is, in all likelihood,
not necessary for the corrective action to comply with the
requirements of subdivisions (a) and (b) and the corrective action
regulations adopted pursuant to Section 25299.77.
   (7) When the local agency, the board, or the regional board
requires a responsible party to conduct corrective action pursuant to
this article, it shall inform the responsible party of its right to
request the designation of an administering agency to oversee the
site investigation and remedial action at its site pursuant to
Section 25262 and, if requested to do so by the responsible party,
the local agency shall provide assistance to the responsible party in
preparing and processing a request for that designation.
   (d) Notwithstanding Section 25297.1, the board shall implement a
procedure that does not assess an owner, operator, or responsible
party taking corrective action pursuant to this chapter for the costs
of a local oversight program pursuant to paragraph (4) of
subdivision (d) of Section 25297.1.  The board shall institute an
internal procedure for assessing, reviewing, and paying those costs
directly between the board and the local agency.  At least 15 days
before the board proposes to disapprove a claim for corrective action
costs which have been incurred on the grounds that the costs were
unreasonable or unnecessary, the board shall issue a notice advising
the claimant and the lead agency of the proposed disallowance, to
allow review and comment.
   (e) A person to whom an order is issued pursuant to subdivision
(c), shall have the same rights of administrative and judicial appeal
and review as are provided by law for cleanup and abatement orders
issued pursuant to Section 13304 of the Water Code.
   (f) Until the board adopts regulations pursuant to Section
25299.77, the owner, operator, or other responsible party shall take
corrective action in accordance with Chapter 6.7 (commencing with
Section 25280) and the federal act.
   (g) If a person to whom an order is issued pursuant to subdivision
(c) does not comply with the order, the regional board or the local
agency may undertake or contract for corrective action and recover
costs pursuant to Section 25299.70.
   (h) The following uniform closure letter shall be issued to the
owner, operator or other responsible party taking corrective action
at an underground storage tank site by the local agency or the
regional board with jurisdiction over the site, or the board, upon a
finding that the underground storage tank site is in compliance with
the requirements of subdivisions (a) and (b) and with any corrective
action regulations adopted pursuant to Section 25299.77 and that no
further corrective action is required at the site:



     "(Case File Number)
       Dear (Responsible Party):

           This letter confirms the completion of a site
     investigation and corrective action for the underground
     storage tank(s) formerly located at the above-described
     location.  Thank you for your cooperation throughout this
     investigation.  Your willingness and promptness in
     responding to our inquiries concerning the former
     underground storage tank(s) are greatly appreciated.

           Based on information in the above-referenced file
     and with the provision that the information provided to
     this agency was accurate and representative of site
     conditions, this agency finds that the site investigation
     and corrective action carried out at your underground
     storage tank(s) site is in compliance with the requirements
     of subdivisions (a) and (b) of Section 25299.37 of the
     Health and Safety Code and with corrective action
     regulations adopted pursuant to Section 25299.77 of the
     Health and Safety Code and that no further action related
     to the petroleum release(s) at the site is required.

          This notice is issued pursuant to subdivision (h)
     of Section 25299.37 of the Health and Safety Code.

          Please contact our office if you have any questions
     regarding this matter.

     Sincerely,


     (Name of Board Executive Director, Regional Board Executive

Officer, or Local Agency Director)"

  SEC. 8.  Section 25299.38 of the Health and Safety Code is
repealed.
  SEC. 9.  Section 25299.39 of the Health and Safety Code is amended
to read:
   25299.39.  (a) (1) Unless the board, in consultation with local
agencies and the regional board determines that a site is an
emergency site, the board, at the request of an eligible responsible
party, may suspend additional corrective action or investigation work
at a site, based on a preliminary site assessment conducted in
accordance with the regulations adopted by the board implementing
Section 25299.37, but the board shall not suspend any of the
following activities pursuant to this section:
   (A) Removal of, or approved modifications of, existing tanks.
   (B) Excavation of petroleum saturated soil or removal of excess
petroleum from saturated soil.
   (C) Removal of free product from the saturated and unsaturated
zones.
   (D) Periodic monitoring to ensure that released petroleum is not
migrating in an uncontrolled manner that will cause the site to
become an emergency site.
   (2) For purposes of this subdivision, "emergency site" means a
site that, because of an unauthorized release of petroleum, meets one
of the following conditions:
   (A) The site presents an imminent threat to public health or
safety or the environment.
   (B) The site poses a substantial probability of causing a
condition of contamination or nuisance, as defined in Section 13050
of the Water Code, or of causing pollution of a source of drinking
water at a level that is a violation of a primary or secondary
drinking water standard adopted by the State Department of Health
Services pursuant to Chapter 4 (commencing with Section 116270) of
Part 12 of Division 104.
   (b) The suspension shall continue until one of the following
occurs:
   (1) The board provides the eligible responsible party with a
letter of commitment that the party will receive reimbursement for
the corrective action.
   (2) The responsible party requests in writing that the suspension
be terminated and that the work continue.
   (3) The fund is no longer in existence.
   (c) The board shall adopt regulations that specify the conditions
under which a site is an imminent threat to public health or safety
or to the environment or poses a substantial probability of causing a
condition of contamination, nuisance, or pollution as specified in
paragraph (2) of subdivision (a).  The board shall not suspend
corrective action or investigation work at any site pursuant to this
section until the effective date of the regulations adopted by the
board pursuant to this subdivision.
  SEC. 10.  Section 25299.39.1 of the Health and Safety Code is
amended to read:
   25299.39.1.  (a) The board shall develop, implement, and maintain
a system for storing and retrieving data from cases involving
discharges of petroleum from underground storage tanks to allow
regulatory agencies and the general public to use historic data in
making decisions regarding permitting, land use, and other matters.
The system shall be accessible to government agencies and the general
public.  A site included in the data system shall be clearly
designated as having no residual contamination if, at the time the
site is closed or at any time after closure, the board determines
that no residual contamination remains on the site.
   (b) For purposes of this section, "residual contamination" means
the petroleum that remains on a site after a corrective action has
been carried out and the cleanup levels established by the corrective
action plan for the site, pursuant to subdivision (g) of Section
2725 of Title 23 of the California Code of Regulations, have been
achieved.
  SEC. 11.  Section 25299.39.2 of the Health and Safety Code is
amended to read:
   25299.39.2.  (a) The manager responsible for the fund shall notify
tank owners or operators who have an active letter of commitment
that has been in an active status for five years or more and shall
review the case history of their tank case on an annual basis unless
otherwise notified by the tank owner or operator within 30 days of
the notification.  The manager, with approval of the tank owner or
operator, may make a recommendation to the board for closure.  The
board may close the tank case or require the closure of a tank case
at a site under the jurisdiction of a regional board or a local
agency implementing a local oversight program under Section 25297.1
if the board determines that corrective action at the site is in
compliance with all of the requirements of subdivisions (a) and (b)
of Section 25299.37 and the corrective action regulations adopted
pursuant to Section 25299.77.  If a tank case is at a site under the
jurisdiction of a local agency that is not implementing a local
oversight program under Section 25297.1, the board may recommend to
the local agency that the case be closed.
   (b) (1) Any owner, operator, or other responsible party who has a
tank case and who believes that the corrective action plan for the
site has been satisfactorily implemented, but where closure has not
been granted, may petition the  board for a review of the case,
whether or not the petitioner is eligible for reimbursement from the
fund pursuant to Section 25299.54.
   (2) Upon receipt of a petition pursuant to paragraph (1), the
board may close the tank case or require closure, if the tank case is
at a site under the jurisdiction of a regional board or a local
agency that is implementing a local oversight program under Section
25297.1 and if the board determines that corrective action at the
site is in compliance with all of the requirements of subdivisions
(a) and (b) of Section 25299.37 and the corrective action regulations
adopted pursuant to Section 25299.77.  If a tank case is at a site
under the jurisdiction of a local agency that is not implementing a
local oversight program pursuant to Section 25297.1, the board may
recommend to the local agency that the tank case be closed.
   (c) Any aggrieved person may, not later than 30 days from the date
of final action by the board, pursuant to subdivision (a) or (b),
file with the superior court a petition for writ of mandate for
review of the decision.  If the aggrieved person does not file a
petition for writ of mandate within the time provided by this
subdivision, a board decision shall not be subject to review by any
court.  Section 1094.5 of the Code of Civil Procedure shall govern
proceedings for which petitions are filed pursuant to this
subdivision.  For purposes of subdivision (c) of Section 1094.5 of
the Code of Civil Procedure, the court shall uphold the decision if
the decision is based upon substantial evidence in light of the whole
record.
   (d) The authority provided under this section does not limit a
person's ability to petition the board for review under any other
state law.
  SEC. 12.  Section 25299.51 of the Health and Safety Code is amended
to read:
   25299.51.  The board may expend the money in the fund for all of
the following purposes:
   (a) In addition to the purposes specified in subdivisions (c),
(d), and (e), for expenditure by the board for the costs of
implementing this chapter, which shall include costs incurred by the
board pursuant to Article 8.5 (commencing with Section 25299.80.1).
   (b) To pay for the administrative costs of the State Board of
Equalization in collecting the fee imposed by Article 5 (commencing
with Section 25299.40).
   (c) To pay for the reasonable and necessary costs of the regional
board or local agency for corrective action pursuant to Section
25299.36, up to one million dollars ($1,000,000) per occurrence.  The
Legislature may appropriate the money in the fund for expenditure by
the board, without regard to fiscal year, for prompt action in
response to any unauthorized release.
   (d) To pay for the costs of an agreement for the abatement of, and
oversight of the abatement of, an unauthorized release of hazardous
substances from underground storage tanks, by a local agency, as
authorized by Section 25297.1 or by any other provision of law,
except that, for the purpose of expenditure of these funds, only
underground storage tanks, as defined in Section 25299.24, shall be
the subject of the agreement.
   (e) To pay for the costs of cleanup and oversight of unauthorized
releases at abandoned tank sites.  The board shall not expend more
than 25 percent of the total amount of money collected and deposited
in the fund annually for the purposes of this subdivision and
subdivision (h).
   (f) To pay claims pursuant to Section 25299.57.
   (g) To pay, upon order of the Controller, for refunds pursuant to
Part 26 (commencing with Section 50101) of Division 2 of the Revenue
and Taxation Code.
   (h) To pay for the reasonable and necessary costs of the regional
board or the local agency for corrective action pursuant to
subdivision  (g) of Section 25299.37.
   (i) To pay claims pursuant to Section 25299.58.
  SEC. 13.  Section 25299.52 of the Health and Safety Code is amended
to read:
   25299.52.  (a) The board shall adopt a priority ranking list at
least annually for awarding claims pursuant to Section 25299.57 or
25299.58.  Any owner or operator eligible for payment of a claim
pursuant to Section 25299.54 shall file an application with the board
within a reasonable period, to be determined by the board, prior to
adoption of the priority ranking list.
   (b) Except as provided in subdivision (c), in awarding claims
pursuant to Section 25299.57 or 25299.58, the board shall pay claims
in accordance with the following order of priority:
   (1) Owners of tanks who are eligible to file a claim pursuant to
subdivision (e) of Section 25299.54.
   (2) Owners and operators of tanks which are either of the
following:
   (A) An owner or operator of a tank that is a small business, by
meeting the requirements of subdivision (d) of Section 14837 of the
Government Code.  An owner or operator which meets that definition of
small business, but who is domiciled or has its principle office
outside of the state, shall be classified in this category if the
owner or operator otherwise meet the requirements of subdivision (d)
of Section 14837 of the Government Code with regard to the number of
employees and the total annual revenues received.
   (B) An owner or operator which is a city, county, district, or
nonprofit organization that receives total annual revenues of not
more than seven million dollars ($7,000,000).  In determining the
amount of a nonprofit organization's annual revenues, the board shall
calculate only those revenues directly attributable to the
particular site at which the tank or tanks for which the claim is
submitted are located.
   (3) Owners or operators of tanks which are either of the
following:
   (A) The owner or operator owns and operates a business which
employs fewer than 500 full-time and part-time employees, is
independently owned and operated, and is not dominant in its field of
operation.
   (B) The owner or operator is a city, county, district, or
nonprofit organization that employs fewer than 500 full-time and
part-time employees.  In determining the number of employees employed
by a nonprofit organization, the board shall calculate only those
employees employed at the particular site at which the tank or tanks
for which the claim is submitted are located.
   (4) All other tank owners and operators.
   (c) (1) In any year in which the board is not otherwise authorized
to award at least 15 percent of the total amount of funds committed
for that year to tank owners or operators in those categories set
forth in paragraph (3) or (4) of subdivision (b) due to the priority
ranking list award limitations set forth in subdivision (b), the
board shall allocate between 14 and 16 percent of the total amount of
funds committed for that year to each category that is not otherwise
entitled to at least that level of committed funding for that year.

   (2) If the total amount of claims outstanding in one or more of
the priority categories specified in paragraph (3) or (4) of
subdivision (b) is less than 15 percent of the total amount annually
appropriated from the fund for the purpose of awarding claims, the
board shall reserve for making claims in that category only the
amount that is necessary to satisfy the outstanding claims in that
category.
   (d) The board shall give priority to a claim that is filed before
September 24, 1993, by a city, county, or district that is eligible
for payment pursuant to Section 25299.54 in the following manner:
   (1) The board shall determine whether the priority category
specified for a city, county, or district pursuant to subparagraph
(B) of paragraph (2), or pursuant to subparagraph (B) of paragraph
(3), of subdivision (b) requires that the priority ranking of the
claim be changed.
   (2) If the priority ranking of the claim is changed and the claim
is placed into either the priority category specified in subparagraph
(B) of paragraph (2), or specified in subparagraph (B) of paragraph
(3), of subdivision (b), the board shall pay all other claims that
were assigned to that priority category prior to September 24, 1993,
before paying the claim of the city, county, or district.
   (e) The board may, to carry out the intent specified in paragraph
(1) of subdivision (b) of Section 25299.10 and to expedite the
processing and awarding of claims pursuant to Sections 25299.57 and
25299.58, implement the contracting procedures required by Chapter 10
(commencing with Section 4525) of Division 5 of Title 1 of the
Government Code, as may be necessary, to alleviate the claims
processing and award backlog.  If, at the conclusion of any fiscal
year, 25 percent or more of the funds appropriated annually for
awards to claimants during that year have not actually been obligated
by the board, the board shall, at its next regularly scheduled
meeting, determine, in a public hearing, whether, given the
circumstances of the awards backlog, it is appropriate to implement
those contracting procedures for some, or all, of the claims filed
with the board.
   (f) For purposes of this section, the following definitions shall
apply:
   (1) "Nonprofit organization" means a nonprofit public benefit
organization incorporated pursuant to Part 2 (commencing with Section
5110) of Division 2 of Title 1 of the Corporations Code.
   (2) "Annual revenue," with respect to public entities, means the
total annual general purpose revenues, excluding all restricted
revenues over which the governing agency has no discretion, as
reported in the Annual Report of Financial Transactions submitted to
the Controller, for the latest fiscal year ending prior to the date
the fund reimbursement claim application was filed.
   (3) "Annual revenue," with respect to nonprofit organizations,
means the total annual revenues, as shown in an annual fiscal report
filed with the Registry of Charitable Trusts of state and federal tax
records, based on the latest fiscal year ending prior to the date
the fund reimbursement claim application was filed.
   (4) "General purpose revenues," as used in paragraph (2), means
revenues consisting of all of the following:  secured and unsecured
revenues; less than countywide funds, secured and unsecured; prior
year secured and unsecured penalties and delinquent taxes; sales and
use taxes; transportation taxes (nontransit); property transfer
taxes; transient lodging taxes; timber yield taxes; aircraft taxes;
franchise taxes; fines, forfeitures, and penalties; revenues from use
of money and property; motor vehicle in-lieu taxes; trailer coach
in-lieu taxes; homeowner property tax relief; open-space tax relief;
and cigarette taxes.
  SEC. 14.  Section 25299.53 of the Health and Safety Code is amended
to read:
   25299.53.  (a) A regional board or a local agency taking, or
contracting for, corrective action pursuant to subdivision  (g) of
Section 25299.37 shall, before commencing the corrective action, take
both of the following actions:
   (1) The regional board or local agency shall notify the board of
the planned corrective action.  If an owner, operator, or other
responsible party is taking the corrective action in accordance with
Section 25299.37, the regional board or local agency shall not
initiate a corrective action pursuant to this chapter.
   (2) If an owner, operator, or other responsible party is not
taking or has not taken the action specified in paragraph (1), the
regional board or local agency shall submit the estimated cost of the
corrective action to the board, which shall approve or disapprove
the reasonableness of the cost estimate.  The regional board or local
agency shall obtain approval of the corrective action and the cost
estimate before taking, or contracting for, any corrective action.
   (b) If the board approves the request of the regional board or
local agency made pursuant to paragraph (2) of subdivision (a), the
board shall, after making the determination specified in subdivision
(c), pay for the costs of corrective action performed by a regional
board, local agency, or qualified contractor.
   (c) The board shall not make any payment pursuant to subdivision
(b) unless the board determines that the owner, operator, or other
responsible party of the tank has failed or refused to comply with a
final order for corrective action issued pursuant to Section 25299.37
with respect to the unauthorized release of petroleum from the tank.

   (d) Upon making any payment to a regional board or local agency
pursuant to subdivision (b), the board shall recover the amount of
payment pursuant to Section 25299.70.
  SEC. 15.  Section 25299.54 of the Health and Safety Code is amended
to read:
   25299.54.  (a) Except as provided in subdivisions (b), (c), (d),
(e), and (g), an owner or operator, required to perform corrective
action pursuant to Section 25299.37, or an owner or operator who, as
of January 1, 1988, is required to perform corrective action, who has
initiated this action in accordance with Division 7 (commencing with
Section 13000) of the Water Code, who is undertaking corrective
action in compliance with waste discharge requirements or other
orders issued pursuant to Division 7 (commencing with Section 13000)
of the Water Code, or Chapter 6.7 (commencing with Section 25280),
may apply to the board for satisfaction of a claim filed pursuant to
this article.
   (b) A person who has failed to comply with Article 3 (commencing
with Section 25299.30) is ineligible to file a claim pursuant to this
section.
   (c) Any owner or operator of an underground storage tank
containing petroleum is ineligible to file a claim pursuant to this
section if the person meets both of the following conditions:
   (1) The person knew, before January 1, 1988, of the unauthorized
release of petroleum which is the subject of the claim.
   (2) The person did not initiate, on or before June 30, 1988, any
corrective action in accordance with Division 7 (commencing with
Section 13000) of the Water Code concerning the release, or the
person did not, on or before June 30, 1988, initiate corrective
action in accordance with Chapter 6.7 (commencing with Section 25280)
or the person did not initiate action on or before June 30, 1988, to
come into compliance with waste discharge requirements or other
orders issued pursuant to Division 7 (commencing with Section 13000)
of the Water Code concerning the release.
   (d) An owner or operator who violates Article 4 (commencing with
Section 25299.36) is liable for any corrective action costs that
result from the owner's or operator's violation of Article 4
(commencing with Section 25299.36) and is ineligible to file a claim
pursuant to this section.
   (e) Notwithstanding this chapter, a person who owns a tank located
underground that is used to store petroleum may apply to the board
for satisfaction of a claim, and the board may pay the claim pursuant
to Section 25299.57 without making the findings specified in
paragraph (3) of subdivision (d) of Section 25299.57 if all of the
following apply:
   (1) The tank meets one of the following requirements:
   (A) The tank is located at the residence of a person on property
used exclusively for residential purposes at the time of discovery of
the unauthorized release of petroleum.
   (B) The tank owner demonstrates that the tank is located on
property which, on and after January 1, 1985, is not used for
agricultural purposes, the tank is of a type specified in
subparagraph (B) of paragraph (1) of subdivision (x) of Section
25281, and the petroleum in the tank is used solely for the purposes
specified in subparagraph (B) of paragraph (1) of subdivision (x) of
Section 25281 on and after January 1, 1985.
   (2) The tank is not a tank described in subparagraph (A) of
paragraph (1) of subdivision (x) of Section 25281 and the tank is not
used on or after January 1, 1985, for the purposes specified in that
subparagraph.
   (3) The claimant has complied with Section 25299.31 and the permit
requirements of Chapter 6.7 (commencing with Section 25280), or the
claimant is not subject to the requirements of those provisions.
   (f) Whenever the board has authorized the prepayment of a claim
pursuant to Section 25299.57, and the amount of money available in
the fund is insufficient to pay the claim, the owner or operator
shall remain obligated to undertake the corrective action in
accordance with Section 25299.37.
   (g) The board shall not reimburse a claimant for any eligible
costs for which the claimant has been, or will be, compensated by
another person.  This subdivision does not affect reimbursement of a
claimant from the fund under either of the following circumstances:
   (1) The claimant has a written contract, other than an insurance
contract, with another person that requires the claimant to reimburse
the person for payments the person has provided the claimant pending
receipt of reimbursement from the fund.
   (2) An insurer has made payments on behalf of the claimant
pursuant to an insurance contract and either of the following apply:

   (A) The insurance contract explicitly coordinates insurance
benefits with the fund and requires the claimant to do both of the
following:
   (i) Maintain the claimant's eligibility for reimbursement of costs
pursuant to this chapter by complying with all applicable
eligibility requirements.
   (ii) Reimburse the insurer for costs paid by the insurer pending
reimbursement of those costs by the fund.
   (B) The claimant received a letter of commitment prior to June 30,
1999, for the occurrence and the claimant is required to reimburse
the insurer for any costs paid by the insurer pending reimbursement
of those costs by the fund.
   (h)  The Legislature finds and declares that the changes made to
subparagraph (A) of paragraph (1) of subdivision (e) by Chapter 1290
of the Statutes of 1992 is declaratory of existing law.
   (i) The Legislature finds and declares that the amendment of
subdivisions (a) and (g) by the act amending this section during the
1999-2000 Regular Session is declaratory of existing law.
  SEC. 16.  Section 25299.56 of the Health and Safety Code is
repealed.
  SEC. 17.  Section 25299.56 is added to the Health and Safety Code,
to read:
   25299.56.  (a) The board shall determine an applicant's
eligibility for a claim for corrective action costs or third-party
compensation costs pursuant to Section 25299.57 or 25299.58 and
notify the applicant of that determination within 60 days from the
date of the receipt of the claim application.  The board may classify
the claimant's application pursuant to Section 25299.52 after that
60-day period.  If the board sends an applicant a determination of
eligibility pursuant to this subdivision, the board shall not revoke
that determination of eligibility, unless the application contained
fraudulent information or a misrepresentation.  However, the board
may suspend making a reimbursement for a claim until the claimant
corrects any deficiencies that are the basis for the suspension.
Reinstatement of reimbursement shall occur when funds are available
and that reinstatement shall be made ahead of any new letters of
commitment issued as of the date of reinstatement.
   (b) A claimant may request review of any claim or portion of a
claim not paid.  The review shall be conducted and a decision
rendered within 30 days from the date of receipt of the request.
   (c) A claimant may file a petition for review, in writing, with
the board with regard to any unpaid claim that is unresolved to the
satisfaction of the claimant upon expiration of the 30-day period
specified in subdivision (b) and the board shall take final action on
the petition within 90 days of the board's receipt of a complete
petition for review, except that if the board initiates an
adjudicative proceeding on the petition, the board shall take final
action within 270 days of the board's receipt of a complete petition
for review.
   (d) Final action on a petition taken by the board is a final
agency action for the purposes of judicial review of a board
decision.
   (e) A claimant may, not later than 30 days from the date of final
action by the board pursuant to subdivision (c), file with the
superior court a petition for writ of mandate for review of the
decision.  If the claimant does not file a petition for writ of
mandate within the time provided by this subdivision, a board
decision shall not be subject to review by the court.  Section 1094.5
of the Code of Civil Procedure shall govern the proceeding for a
petition filed pursuant to this subdivision.  For purposes of
subdivision (c) of Section 1094.5 of the Code of Civil Procedure, the
court shall uphold the decision if the decision is based upon
substantial evidence in light of the whole record.
   (f) Except as specified in subdivision (g), the procedures in
Article 8 (commencing with Section 11435.05) of Chapter 4.5 of Part 1
of Division 3 of Title 2 of, and in Section 11513 of, the Government
Code apply to any adjudicative proceedings conducted by the board
pursuant to this article.
   (g) (1) Notwithstanding subdivision (f), Sections 801, 802, 803,
804, and 805 of the Evidence Code apply to any adjudicative
proceeding conducted by the board pursuant to this article.
   (2) This section is not a limitation on the authority of the board
to authorize the use of the procedure provided in Article 10
(commencing with Section 11445.10) of Chapter 4.5 of Part 1 of
Division 3 of Title 2 of the Government Code.
  SEC. 18.  Section 25299.57 of the Health and Safety Code is amended
to read:
                                           25299.57.  (a) If the
board makes the determination specified in subdivision (d), the board
may only pay for the costs of a corrective action that exceeds the
level of financial responsibility required to be obtained pursuant to
Section 25299.32, but not more than one million dollars ($1,000,000)
for each occurrence.  In the case of an owner or operator who, as of
January 1, 1988, was required to perform corrective action, who
initiated that corrective action in accordance with Division 7
(commencing with Section 13000) of the Water Code or Chapter 6.7
(commencing with Section 25280), and who is undertaking the
corrective action in compliance with waste discharge requirements or
other orders issued pursuant to Division 7 (commencing with Section
13000) of the Water Code or Chapter 6.7 (commencing with Section
25280), the owner or operator may apply to the board for satisfaction
of a claim filed pursuant to this article.  It is the intent of the
Legislature that claimants applying for satisfaction of claims from
the fund be notified of eligibility for reimbursement in a prompt and
timely manner and that a letter of credit or commitment that will
obligate funds for reimbursement follow the notice of eligibility as
soon thereafter as possible.
   (b) (1) For claims eligible for reimbursement pursuant to
subdivision (c) of Section 25299.55, the claimant shall submit the
actual cost of corrective action to the board, which shall either
approve or disapprove the costs incurred as reasonable and necessary.

   (2) The board shall not reject any actual costs of corrective
action in a claim solely on the basis that the invoices submitted
fail to sufficiently detail the actual costs incurred, if all of the
following applies:
   (A) Auxiliary documentation is provided which documents to the
board's satisfaction that the invoice is for necessary corrective
action work.
   (B) The costs of corrective action work in the claim are
reasonably commensurate with similar corrective action work performed
during the same time period covered by the invoice for which
reimbursement is sought.
   (C) The invoices include a brief description of the work
performed, the date that the work was performed, the vendor, and the
amount.
   (c) For claims eligible for prepayment pursuant to subdivision (c)
of Section 25299.55, the claimant shall submit the estimated cost of
the corrective action to the board, which shall approve or
disapprove the reasonableness of the cost estimate.
   (d) Except as provided in subdivision (j), a claim specified in
subdivision (a) may be paid if the board makes all of the following
findings:
   (1) There has been an unauthorized release of petroleum into the
environment from an underground storage tank.
   (2) The claimant is required to undertake or contract for
corrective action pursuant to Section 25299.37, or, as of January 1,
1988, the claimant has initiated corrective action in accordance with
Division 7 (commencing with Section 13000) of the Water Code.
   (3) (A) Except as provided in subparagraph (B), the claimant has
complied with Section 25299.31 and the permit requirements of Chapter
6.7 (commencing with Section 25280).
   (B) All claimants who file their claim on or after January 1,
1994, and all claimants who filed their claim prior to that date but
are not eligible for a waiver of the permit requirement pursuant to
board regulations in effect on the date of the filing of the claim,
and who did not obtain or apply for any permit required by
subdivision (a) of Section 25284 by January 1, 1990, shall be subject
to subparagraph (A) regardless of the reason or reasons that the
permit was not obtained or applied for.  However, on and after
January 1, 1994, the board may waive the provisions of subparagraph
(A) as a condition for payment from the fund if the board finds all
of the following:
   (i) The claimant was unaware of the permit requirement prior to
January 1, 1990, and there was no intent to intentionally avoid the
permit requirement or the fees associated with the permit.
   (ii) Prior to submittal of the application to the fund, the
claimant has complied with Section 25299.31 and has obtained and paid
for all permits currently required by this paragraph.
   (iii) Prior to submittal of the application to the fund, the
claimant has paid all current underground storage tank fees imposed
pursuant to Section 25299.41 and all prior fees due on and after
January 1, 1991.
   (C) (i) A claimant exempted pursuant to subparagraph (B) shall
obtain a level of financial responsibility twice as great as the
amount which the claimant is otherwise required to obtain pursuant to
subdivision (a) of Section 25299.32.
   (ii) The board may waive the requirements of clause (i) if the
claimant can demonstrate that the conditions specified in clauses (i)
to (iii), inclusive, of subparagraph (B) were satisfied prior to the
causing of any contamination.  That demonstration may be made
through a certification issued by the permitting agency based on site
and tank tests at the time of permit application or in any other
manner acceptable to the board.
   (D) The board shall rank all claims resubmitted pursuant to
subparagraph (B) lower than all claims filed before January 1, 1994,
within their respective priority classes specified in subdivision (b)
of Section 25299.52.
   (4) The board has approved either the costs incurred for the
corrective action pursuant to subdivision (b) or the estimated costs
for corrective action pursuant to subdivision (c).
   (e) The board shall provide the claimant, whose cost estimate has
been approved, a letter of credit authorizing payment of the costs
from the fund.
   (f) The claimant may submit a claim for partial payment to cover
the costs of corrective action performed in stages, as approved by
the board.
   (g) (1) Any claimant who submits a claim for payment to the board
shall submit multiple bids for prospective costs as prescribed in
regulations adopted by the board pursuant to Section 25299.77.
   (2) Any claimant who submits a claim to the board for the payment
of professional engineering and geologic work shall submit multiple
proposals and fee estimates, as required by the regulations adopted
by the board pursuant to Section 25299.77.  The claimant's selection
of the provider of these services is not required to be based on the
lowest estimated fee, if the fee estimate conforms with the range of
acceptable costs established by the board.
   (3) Any claimant who submits a claim for payment to the board for
remediation construction contracting work shall submit multiple bids,
as required in the regulations adopted by the board pursuant to
Section 25299.77.
   (4) Paragraphs (1), (2), and (3) do not apply to a tank owned or
operated by a public agency if the prospective costs are for private
professional services within the meaning of Chapter 10 (commencing
with Section 4525) of Division 5 of Title 1 of the Government Code
and those services are procured in accordance with the requirements
of that chapter.
   (h) The board shall provide, upon the request of a claimant,
assistance to the claimant in the selection of contractors retained
by the claimant to conduct reimbursable work related to corrective
actions.  The board shall develop a summary of expected costs for
common remedial actions.  This summary of expected costs may be used
by claimants as a guide in the selection and supervision of
consultants and contractors.
   (i) The board shall pay, within 60 days from the date of receipt
of an invoice of expenditures, all costs specified in the work plan
developed pursuant to Section 25299.37, and all costs which are
otherwise necessary to comply with an order issued by a local, state,
or federal agency.
   (j) (1) The board shall pay a claim of not more than three
thousand dollars ($3,000) per occurrence for regulatory technical
assistance to an owner or operator who is otherwise eligible for
reimbursement under this chapter.
   (2) For the purposes of this subdivision, regulatory technical
assistance is limited to assistance from a person, other than the
claimant, in the preparation and submission of a claim to the fund.
Regulatory technical assistance does not include assistance in
connection with proceedings under Section 25299.39.2 or 25299.56 or
any action in court.
   (k) (1) Notwithstanding any other provision of this section, the
board shall pay a claim for the costs of corrective action to a
person who owns property on which is located a release from a
petroleum underground storage tank which has been the subject of a
completed corrective action and for which additional corrective
action is required because of additionally discovered contamination
from  the previous release, only if the person who carried out the
earlier and completed corrective action was eligible for, and applied
for, reimbursement pursuant to subdivision (b), and only to the
extent that the amount of reimbursement for the earlier corrective
action did not exceed the amount of reimbursement authorized by
subdivision (a).  Reimbursement to a claimant on a reopened site
shall occur when funds are available, and reimbursement commitment
shall be made ahead of any new letters of commitment to be issued, as
of the date of the reopening of the claim, if funding has occurred
on the original claim, in which case funding shall occur at the time
it would have occurred under the original claim.
   (2) For purposes of this subdivision, a corrective action is
completed when the local agency or regional board with jurisdiction
over the site or the board issues a closure letter pursuant to
subdivision (h) of Section 25299.37.
  SEC. 19.  Section 25299.59 of the Health and Safety Code is amended
to read:
   25299.59.  (a) If the board has paid out of the fund for any costs
of corrective action, the board shall not pay any other claim out of
the fund for the same costs.
   (b) Notwithstanding Sections 25299.57 and 25299.58, the board
shall not reimburse or authorize prepayment of any claim in an
aggregate amount exceeding one million dollars ($1,000,000), less the
minimum level of financial responsibility specified in Section
25299.32, for a claim arising from the same event or occurrence.
   (c) The board may conduct an audit of any corrective action claim
honored pursuant to this chapter.  The claimant shall reimburse the
state for any costs disallowed in the audit.  A claimant shall
preserve, and make available, upon request of the board or the board'
s designee, all records pertaining to the corrective action claim for
a period of three years after the final payment is made to the
claimant.
  SEC. 20.  Section 25299.62 is added to the Health and Safety Code,
to read:
   25299.62.  All claims that are approved shall be forwarded to the
Controller within 10 days from the date of approval, for payment by
the Controller.
  SEC. 21.  Section 25299.63 is added to the Health and Safety Code,
to read:
   25299.63.  This article does not require any person to pursue a
claim against the board pursuant to this article before seeking any
other remedy.  This section does not affect the requirement for
exhaustion of administrative remedies before obtaining judicial
review of any action of the board on a claim or petition for closure
of a tank case.
  SEC. 22.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.
